State-owned Hindustan Petroleum Corporation (HPCL) will issue 2:1 bonus shares following a government directive.
HPCL will issue two bonus shares of Rs 10 each for every existing one, the company said in a regulatory filing.
This will be subject to approval of shareholders at the upcoming annual general meeting scheduled for September 8, 2016.
HPCL said its board has approved raising the authorised share capital to Rs 2,500 crore and further recommended capitalisation of reserves.
The government had written to all profit-making public sector units to consider buying back shares or issuing bonus shares to put their surplus cash to use and giving their owner, the government, more value.
HPCL board at its meeting today raised the name plate (recognised) capacity of its Mumbai refinery by 15 per cent to 7.5 mt per annum, from the earlier of 6.5 mt.
"The name plate capacity stands enhanced... Due to various process improvements and de-bottlenecking schemes implemented by the company (in the recent past)," HPCL said in a regulatory filing.
The board at its meeting today approved the proposal to declare Mumbai refinery name plate capacity at 7.5 mt.
It has already approved expansion of capacity of its Visakhapatnam refinery to 15 mt from the current 8.3 mt with an investment of Rs 20,928 crore.
